Why Most Restaurants Overlook Their Most Profitable Marketing Tool

Why Most Restaurants Overlook Their Most Profitable Marketing Tool

Why Most Restaurants Overlook Their Most Profitable Marketing Tool

Urban legend: more new customers lead to greater profits

More customers means more money, right? With most marketing tools designed to do just that, it’s an easy conclusion to jump to.

The problem with this line of thinking is that it ignores three proven facts:

  1. It’s more expensive to acquire new customers than it is to retain existing ones—5 to 25 times more, according to the Harvard Business Review.
  2. The majority of any restaurant’s profits come from a core group of repeat customers. It’s impossible to run a profitable restaurant without loyal fans.
  3. Retaining customers is essential to profitability. A mere 5% increase in retention has shown to increase profits by 25% to 95%.

The message is clear: the most profitable marketing tools focus on retaining customers, turning them into loyal fans, and driving repeat visits.

Enter WiFi Marketing

Restaurants offer free guest WiFi because they know customers enjoy it, stay longer, and spend more money as a result. However, the benefits of WiFi extend far beyond a single visit.

WiFi marketing is about using a service you already provide, WiFi, to acquire customer emails for retention marketing. A WiFi marketing platform, like Yelp WiFi, allows you to create a branded login page where customers enter their email, phone number, or social profile in exchange for access to your WiFi.

In turn, this allows you to grow a list of contacts who want to hear from you and to focus on retaining existing customers, rather than constantly chasing new ones.

5 ways to profit with WiFi marketing

Of course, a WiFi marketing platform doesn’t merely grow a list of valuable contacts, it also allows you to automate promotions, analyze customer data, and enhance your other marketing efforts in a variety of ways. Here are a few worth mentioning:

1. Send automated messages

One of the biggest benefits of using a WiFi marketing platform is the easy to use, set-and-forget campaign messages. To learn all about how effective email marketing can be, check out our guide: Email Marketing That Works For You .


2. Make messages personalized

Another huge benefit is that you can easily use customer information, like their name, age, gender and birthday, to send personalized promotions that they’re more likely to open and engage with.


3. Use triggered campaigns

A unique feature of WiFi marketing is that you’ll be able to send email or text messages to customers the moment they enter or exit your store. One way you can make use of this feature is by creating a loyalty program like Tokyo Smoke did, increasing their visitor frequency to three times their previous traffic numbers.

4. Turn at-risk customers into regulars again

You can also send out messages based on when a customer last visited your restaurant. This allows you to reach out to customers who are at-risk of never returning and entice them back with a coupon offer or a secret menu.


5. Promote events, grow your social following, and more

Using the branded login page and the URL which customers are automatically redirected to when they sign in, you can effectively enhance your other marketing efforts. You can promote events or your newest menu items on your website, or invite them to follow your delicious-looking Instagram account.


Why WiFi is so profitable

WiFi marketing is profitable because it’s targeted. No money is wasted trying to reach people that would never visit your restaurant. In fact, the opposite is true. It allows you to focus exclusively on targeting existing customers to increase loyalty and retention.

By using your WiFi to grow a list of contacts, automate promotions, and drive recurring revenue, a WiFi marketing platform can easily become your most profitable marketing tool.

Book a demo to see how easy it is to grow your brand.

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